Vietnam consumer confidence experienced a slight correction after taking a steep 24 point jump in second half 2009. Vietnam confidence dipped to 101 points in quarter 1, a drop of 8 points, according to the latest edition of the Nielsen Global Consumer Confidence Index.
In contrast, Vietnam still stands 9 points ahead of the global average, which increased to 92 points. But the drop in confidence brings Vietnam down the list from 4th most confident country at the end of 2009 to 11th most confident for the latest edition of Consumer Confidence.
In one of the clearest signs yet that the world is recovering from a “Great Recession,” consumer confidence levels have reached pre-downturn levels in some countries, according to the latest edition of the Nielsen Global Consumer Confidence Index. But the recovery has not taken hold evenly, and some countries remain quite skittish about the economy. Globally, the index reached 92 in the first quarter – just two points shy of the high score posted in the third quarter of 2007 before the recession swept across the world. Confidence hit an all-time low of 77 index points in early 2009.
“We view this as a slight correction rather than a significant decline in Vietnam confidence from the second half 2009 results. As in 2009, the confidence jumped significantly and like other markets, we believe the massive government stimulus programs announced, including in Vietnam, was partly the reason. In 2009, the consumer price index was 6.88% - the lowest in the past 6 years – which likely also influenced the steep confidence jump then,” said Mr. Darin Williams, Managing Director, rhe Nielsen Company Vietnam.
Despite, the slight correction, Vietnam consumers are still relatively optimistic – only 56% of those surveyed believe Vietnam is still in a recession, down from 69% in second half 2009. Forty-three % of Vietnamese believe they will be out of the recession in the next 12 months, while a notable 34 % said no and another 23% stated “don’t know.”
The Vietnamese continue to be ‘cautiously optimistic’ as 55% of Vietnamese believe job prospects are good-to-excellent over the coming 12 months. Despite a relatively positive outlook on jobs and finances, 54% of Vietnamese consumers stated that timing is “not so good” to buy the things they want and need. After paying for essential living expenses, 49% stated they will put their money into savings, followed by spending on holidays/vacations (39%), spend on new technology products(30%), spend on out of home entertainment (29%), and home improvement spend (29%).
“Consumers in Vietnam are still hesitant to go out and spend money, yet the results indicate that there is a willingness to spend on new products. Companies that focus on value and quality and targeted promotions will be the ones to drive consumption throughout Vietnam,” stated Darin Williams.
Almost identical to their Asian neighbors, Vietnamese consumers’ top four concerns are job security (19%), the economy (18%), work/life balance (14%), and health (11%).
“Nowhere is the return to consumption and shopping habits more evident than in Asia Pacific where consumers have indicated they are ready to spend,” said Christophe Cambournac, President of The Nielsen Company’s Asia Pacific, Middle East and Africa region. “Asian consumers cut back drastically on all aspects of discretionary spending 18 months ago, but have now indicated they plan to increase spending on out-of-home entertainment, new technology, holidays and new clothes compared to six months ago.”
T.N
Vietnamese
